GO-OPERATION ASSURED

Evening Star, Issue 21903, 14 December 1934, Page 17

GO-OPERATION ASSURED

GOVERNMENT AND INDUSTRY ENCOURAGEMENT OF PROGRESSIVE SPIRIT ADDRESS BY PRIME MINISTER “ The Government is very much alive to the necessity for the encouragement of the development of industry, and we shall be pleased to give every consideration to constructive proposals and cd-operato in every way possible, stated the Prime Minister (Right Hon. G. W. Forbes) in the course of the address which ho gave at the annual meeting of the Dunedin Manufacturers Association last night. “It is for these reasons that the Hon. Mr Masters is now freed to devote more personal attention to this important question, and he will himself act as chairman of the Industries Committee, so that he can not only give the matters raised his personal attention, but can interpret thorn directly to Cabinet. Wo invite your direct help and co-opera-tion, and I wish your association every success in its efforts.” , Mr Forbes, who was received with loud applause, said he could see from tire annual report and balance-sheet that tli© association had had a very useful year. He was very pleased to know from the Tariff Commission’s report, that the industries in New Zea-

land were being carried on in a very efficient way. Their industries were progressing and were being managed efficiently. Mr Coates had handled the tariff, and he handled it in a very able way. Full recognition had been given to tire representations made by those who were affected or were likely to be affected by the tariff, and the case had been well prepared by the Customs Department and also by the Minister of Industry and Commerce. He had been very pleased to hear the remarks regarding Mr Masters. They liad felt that as the Department of Industries and Commerce was one of the niost important in the dominion Mr Masters should be able to devote the whole of his time to it. Mr Masters had therefore been relieved of the portfolio of Education, in which department he had also done excellent work. UNEMPLOYMENT. He had always been of the opinion that the secondary industries of the country were a great help indeed in Conection with employment. They had to look to the progress of these industries to absorb their increasing population. They could not stand still, and owing to the exceedingly low prices of their primary produce they were not able to absorb the increase in employment on the land. More and more, therefore, would they have to look to' the local industries to meet the position. “ From a general study of the figures supplied to me,” said Mr Forbes, “ it is pleasing to note that in spite ofthe continuing slump the number of persons engaged iff secondary indus-

tries, the value of raw material used, and also the value of the finished product, all show a small-but definite increase between the years 1932 and 1933, and a further increase seems to ho forecasted for the 1933-34 figures which are. however, not yet completely available. I also notice that of the GB.OO odd employees in manufacturing industries, well over one-third are engaged in the processing of the immediate products of primary industry, c.g., dairy factories, meat works, etc., and that it is in these industries that employment has more than held its oivni

“ For instance, in the meat freezing and preserving industry, the numbers of persons engaged have increased from 5.890 in 1930 to 7.650, while in the dairy manufacturing industry the number of employees lias held its own at about. 4,100. The figures relating to such industries as biscuit and confectionery making (2,700), woollen milling (2,400}, boot and shoemaking (2,400), clothing manufacturing (7,<>00), have about held their own, or, if anything, has shown a slight increase. In engineering, however, the figures show a very decided reduction in employment. For instance, under the heading engineering there were 3,465 persons employed in 1930-31, while in the latest figures available in 1931-33 the numbers were only 2,330, while in coach building, motor and cycle engineering the figures fell from 6,350 to .4,550 in the same period, though no doubt the latest 1933-34 figures may show a partial recovery in these cases. But compared with other manufacturing countries, such as Britain, United States, and Australia, for example, the numbers of persons employed in the newer technical industries referred to above have not increased in New Zealand, to anything like the same relative extent.” NEWER INDUSTRIES WANTED.

It would appear from the point of yiew inf increased employment that what they needed in the immediate future was not only an expansion of their present industries,, but newer oncs._ In other_ countries newer industries were being introduced as the result of inventions, and by this meant these countries were enabled to absorb a fair number of their population. When these now industries did reach the dominion they would have .to be alert, and where it was possible for the Government to assist the industries they could be assured of that support. DEVELOPMENT OF INDUSTRY. The Development of Industries Committee had been set up two years ago. It had undertaken a good many investigations, and the information collected had proved very useful indeed. But so that the committee could function better and show better results, Mr Masters had been appointed chairman of the committee. They had a close co-opera-tion between this committee and the Employment Board. The field of work ■was, hbwever, fairly narrow, because many of the avenues could be safely left to private enterprise to exploit. There was not the scope that there was in dealing with newer industries. They would, however, he thought, be able to get some results. The best thing they could achieve was to get men into employment. The only satisfactory solution was to provide omployment so that the workers,‘could become self-support-ing and not have to look to the Employment Board. (Applause.) - • INDUSTRIAL CO-ORpiNAT!ON. Before he had left Wellington, their federation secretary had handed to him a very interesting document dealing with a report of a special committee of the federation on industrial co-ordi-nation. ,The proposals made were many, novel, radical, and far-reaching, and naturally he would be interested to learn as to how far manufacturers as a whole gave their full backing to each or all of the proposals. Apparently the suggestion was to set up an Industrial Commission with functions somewhat along the lines of the. Agricultural Commissipu which had been the subject of recent legislation. The proposals would involve a, certain amount .of regimentation of secondary, industries and discipline backed by Government regulation. Naturally the proposals would need very careful consideration by the Government and by themselves to make sure that any stops taken, might be in the right direction as a foundation for the future, when they hoped and believed that the present depression and uncertain times might have passed. • In the scheme proposed there were two interesting problems raised—(l) Co-ordina-tion of industries for elimination of wasteful forms of competition; and (2) licensing of new units of industry. One wondered how far it was expected that those who represented industry and the Government could go in the, direction indicated. It was suggested that businesses could be licensed and where it was considered there were too many factories no, more, should be allowed. Well, that was a far-reaching proposal, because there came into it the question of competition. They might have a number of businesses that were not efficient, and they might have business men who might consider they could do better than those who were in the existing businesses were doing. They should do all they _ po.ssibl.y_ could to secure the very best information in connection' with .the latest processes of manufacture. In the Old Country a great deal was being done in regard to improved processes. CONDITIONS OF MARKETING.

The setting up of the Agricultural Commission had been considered necessary by the Government because of the special conditions of regulation of marketing proposed by the British Government. It had not been a deliberate step towards socialisation of or interference in industry apart from the necessity of an organisation with power to deal with the emergency which had arisen. The extent to which powers would be given to it by Order-in-Council must depend on the extent to which the quota principle was applied to their exports and the permanence, or otherwise, of quotas arid the possible development of trade agroments amounting almost to barter arrangements for the marketing of their agricultural products. He had read in the papers the previous day the possibility of proposals for barter agreements for Australian wool for German goods. One realised the far-reaching consequences of quotas and barter. It might well be that they would affect manufactured goods in which the interests of local manufacturers would have to be taken into account. This latter aspect was not raised, however, in their federation's proposal, and in any case was, be hoped, not an immediate problem. RESEARCH ASSOCIATIONS. There were twenty-one co-operatiye research associations in Britain to-day. This industrial effort provided oyer £600,000,000 of net output, and included such leaders of industry as Sir Kenneth Lee (cotton), Mr M'Kenna. Mr Samuel Courtanld, Lord Barnby (wool), Mr Bostock (boots), Mr B. fe. Rowntree, Sir William Larke (iron and steel), Mr Tliorneycroft and Mr Siddelcy (motors), Lord Rutherford, etc. This gathering wont on record, based on actual experience, in favour of such cp.-pxieratiqn.) The co-ordination which

those present had in mind was in regard to research and technical problems and trade statistics of their industries, leaving the selling and distribution to private agreements. Mr _ Forbes quoted the remarks of Mr llunciman, Lord Rutherford, the chairman of the Linen Association, the chairman of the Paint Association, and the chairman of the Non-ferrous Metals Association in favour of the movement and the value of linking up science with the problems facing industries. The sentiments regarding the value of science, said Mr Forbes, were shared by himself, and he went on to refer to the great value of research. Industries were so specialised that to be effective any co-operation must be by individual industries or groups of industries working more or less autonomously themselves, but with general co-ordinated liason services for all industries.

The Government was very much alive to the, necessity for encouragement of the development of industry, and he would be pleased to give every consideration to constructive proposals and co-operato in every way possible. It was for these reasons that Mr Masters was now freed to devote more personal attention to this important question, and he would himself act as chairman of the Industries Committee, so that he could not only give the matters raised his personal attention, hut could interpret _ them directly to Cabinet. They invited the direct help and cooperation of manufacturers, and he wished their association every success in its efforts. (Applause.) APPRECIATION EXPRESSED. Mr T. Somerville, the incoming;president of the association, expressed the thanks of those present for the clear, concise, and interesting address Mr Forbes had given them. They were pleased to hear that Mr Masters had been freed of his duties in connection with education in order that he might concentrate more fully on his portfolios of industries and commerce, since that indicated readiness on the part of the Government to co-operate with the manufacturing interests. They wfre also grateful for Mr Forbes’s frank critir'''m of the co-ordination scheme, from which they believed the'secondary industries would derive some benefit. Mr Somerville referred to the fact that Air Forbes had been chosen tp lead the Coalition Government through a period of great difficulty, and the people appreciated the courageous and honest manner in which he had faced the task. Replying, Mr Forbes stressed the need for goodwill in industry, and said he was sure that in any (dealings with their employees the manufacturers would be as generous as it was possible to be. (“Hear, hear.”). Appreciation of the Prime Minister’s remarks was also ‘expressed by the mayor (the Rev. E. T. Cox), who said there were several things that Dunedin had to thank Mr Forbes and the Government for. These were the obstetrical hospital, the new- high school, the fact that two Dunedin citizens, Messr Richard Hudson, and James Begs, had been appointed directors of the Reserve Bank, and the fact that better conditions had been arranged for the unemployed, Mr Cox also congratulated Mr Forbes on the Government’s representatives in Sydney and Melbourne, who, he said, were a, splendid'advertisement for this country.